M/s:MODI FOOD PRODUCTS CO. LIMITED vs SHRI FAQIR CHAND SHARMA & OTHERS.

The Supreme Court ruled that under Section 23 of the Industrial Disputes (Appellate Tribunal) Act, 1950, an application alleging breach of Section 22(a) must be dismissed if the Tribunal finds the lay off justified. The Court clarified that the compensation payable under Proviso (b) to Section 25-C of the Industrial Disputes Act applies only to distinct lay offs and not to the continuation of a single lay off beyond the initial 45 days. Thus, the Tribunal's decision to award compensation for the entire lay off period was upheld, but the application was dismissed based on the justification of the lay off.